Titan Products Inc Acquisition Of Franz Schuler Gmbh A Case Study Solution and Analysis
Introduction
Titan Products Inc Acquisition Of Franz Schuler Gmbh A Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized information service provider and a big thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Important Concerns
Although, Titan Products Inc Acquisition Of Franz Schuler Gmbh A Case Study Solution has invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring specific challenges to the publishing industry in basic and CMP in specific. These elements consist of;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
The transformation of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the capabilities of the company could be used to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Titan Products Inc Acquisition Of Franz Schuler Gmbh A Case Study Analysis has certain strengths that can be used to lower the hazards, get rid of the weak point and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Titan Products Inc Acquisition Of Franz Schuler Gmbh A Case Study Solution in the publishing market i.e. 60 years permits the business to offer high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its danger and provide high value to its customers.
• Strong monetary position allows the business to think about a number of advancement chances with no worry of raising fund externally.
Weak points
Together with the strengths, the business has specific weaknesses which could increase restrictions for the company in executing its development program. The weaknesses of Titan Products Inc Acquisition Of Franz Schuler Gmbh A Case Study Help are provided as follows;
• Despite of being a science and innovation publishing company, the company still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose specific expansion strategies to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing industry is decreasing since 2008, impacting Titan Products Inc Acquisition Of Franz Schuler Gmbh A Case Study Help as well, however the development might be revived by availing specific opportunities presented in the market. The market opportunities for CMP include;
• The company could also present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by using its vast financial resources.
Threats
The altering macro patterns in the market and increasing competitors in the publishing industry has presented specific dangers to Titan Products Inc Acquisition Of Franz Schuler Gmbh A Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in decreasing market share of Titan Products Inc Acquisition Of Franz Schuler Gmbh A Case Study Help due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using particular techniques like aggressive promotion, quality products, etc.
• Entryway of brand-new publishing companies in the industry along with presence of high competition increases the risk of losing the customer base.
Monetary Analysis.
Due to absence of data, the financial ratios of CMP could not be computed. It could be evaluated from the Appendix III that the yearly total revenues of Titan Products Inc Acquisition Of Franz Schuler Gmbh A Case Study Analysis throughout the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of CMP is growing and the business is rather efficient in bring in a large number of consumers at a potential rate.
In addition to it, the 2nd graph which reveals the yearly growth in the Titan Products Inc Acquisition Of Franz Schuler Gmbh A Case Study Solution overall properties, shows that the company is quite effective in adding worth to its assets through its profits. The development in properties reveals that the overall value of the firm is also increasing with increasing the overall revenues. (Unidentified, 2013).
Another monetary analysis of the business using the offered information could be the analysis relating to the circulation of total earnings of the company. Major part of the incomes of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other business segments with a prospective development to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to discover the various external forces affecting the efficiency of the company and the current patterns in the external environment of the business. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant impact on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Celebration of China. It might be stated that the total political forces impacting CMP service are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in basic and the CMP in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the total GDP growth of the country. All these forces integrate effect the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's choices towards checking out useful products etc. China has the greatest population on the planet with a high population development, showing the increasing number of customers of the Titan Products Inc Acquisition Of Franz Schuler Gmbh A Case Study Help. However, the consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to meet the changing consumer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading strategies etc. Improvement of science and technology together with the rise of digital publishing could decrease the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Titan Products Inc Acquisition Of Franz Schuler Gmbh A Case Study Analysis consists of the issues of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing must not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design could be utilized to examine the appearance of the publishing market China. A quick analysis of the Porter's Five Forces is offered as follows;.
Hazard of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to draw in new entrants to the publishing market. However, the presence of intense competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Hazard of Alternative.
Risk of Alternative is high for the Chinese Publishing Industry. The substitute products for the published files is the documents provided in the digital libraries on specific websites. The altering customer preferences towards digital knowing increase the danger of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Titan Products Inc Acquisition Of Franz Schuler Gmbh A Case Study Solution include the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive costs.
Rivals Analysis.
CMP operates in a highly competitive market with the existence of large number of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Titan Products Inc Acquisition Of Franz Schuler Gmbh A Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Founded in the exact same duration, CIP releases similar kind of books. For a large period, CIP held the biggest market share, and still ranks third and second in numerous market segments, with a significant concentrate on academic publications. CIP acts as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of Titan Products Inc Acquisition Of Franz Schuler Gmbh A Case Study Analysis easily in the present market situation.
Posts and telecommunication Press (PTP).
It was also founded in the exact same duration as Titan Products Inc Acquisition Of Franz Schuler Gmbh A Case Study Help and CIP. It is likewise one of the prominent players in the publishing industry with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the business to lose demand of its products in the market.
Suggestions
As the preferences are shifting towards digital publishing and the business require an instant option to avoid the decreasing industry growth. The company could also think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the company needs to initially gathers the data related to the consumer need, the possible markets, the government policies and the data related to the competitors presented in the market. If the preliminary offering shows a success, the business should go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is decreasing since 2008, showing a hazard to the business's long term existence, but the situation can be managed by thinking about a development strategy in the future. The company could think about presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the danger of failure for entrance in the new markets.
